Many property owners are losing out on potential tax refunds by failing to take full advantage of a property’s tax depreciation potential. An often overlooked method of obtaining tax credits, property tax depreciation is available to any property owner who obtains assessable income by way of rent or operates a business from a property.
 
All types of income producing properties have substantial taxation benefits, over and above negative gearing, that the owner is entitled to claim as a tax credit. Any property, which is either rented or used for income producing purposes, is eligible to be depreciated.
 
In order to maximise the tax benefit a particular property will attract, the owner will require the services of a recognised property tax depreciation expert with specific construction costing skills and experience.
 
Tax legislation recognises only certain professionals within the construction industry as having the relevant qualifications to estimate the cost of building components for tax depreciation purposes.
   
The process of maximising a depreciation claim is based on an intimate understanding of the Income Tax Assessment Act, applicable Income Tax Rulings, Case Law and specific construction costing skills. Each property scenario is different and must be analysed by a specialist to optimise the depreciation benefits.
 
Particular buildings that will attract a claim include: investment apartments, houses, townhouses and duplexes, warehouses, commercial office buildings, office towers, shopping centres, childcare centres, hotels, nursing homes, hospitals, retail centres, industrial complexes and government properties for sale. Basically any building that is used for income producing purposes has potential for tax depreciation.
   
To access the (BMT) Tax Depreciation Calculator to estimate the depreciation savings you can make on your investment property click here.